DXP Enterprises Stock Rises After Q4 Profit Beat, Retail Mood Brightens

The company’s fourth-quarter sales of $470.9 million, exceeded Wall Street’s estimated $447 million.

DXP Enterprises (DXPE) stock rose 4.5% in extended trading on Thursday after the company’s fourth-quarter earnings topped Wall Street’s estimates.

The company reported adjusted earnings of $1.38 per share, while analysts, on average, expected the company to post $0.89 per share in earnings, according to FinChat data.

DXP’s fourth-quarter sales of $470.9 million, exceeded Wall Street’s estimated $447 million.

The Houston-based company reported a net income of $21.3 million, or $1.29 per share for the quarter ended Dec. 31, compared with $16 million, or $0.94 per share, a year earlier.

The company’s adjusted earnings before interest, taxes, depreciation, amortization, and other non-cash charges (EBITDA) were $50.3 million, compared to $41.9 million in the year-ago quarter.

“We see positive dynamics in our traditional end markets like oil & gas, as well as positive outlooks for end markets like water & wastewater,” CEO David Little said.

The company’s service center segment revenue grew to $310.8 million from $285.4 million in the year-ago quarter.

DXP’s innovative pumping solutions segment sales rose to $97.6 million during the fourth quarter from $60.3 million in the same period last year.

The firm’s sales per business day rose to $7,595 from $6,673 a year earlier.

DXP boosted its offering during the quarter by acquiring a company focused on servicing the municipal water and wastewater treatment markets and another one focused on vacuum pump sales, repair, and maintenance.

Retail sentiment on Stocktwits rose to ‘bullish’(59/100) territory from ‘neutral’(54/100) a day ago, while retail chatter remained ‘extremely low.’

One user expressed satisfaction with the double beat.

Over the past year, DXP stock has more than doubled.

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